NEW YORK (The Deal) -- Houston-based Calpine has acquired the Fore River Generating Station, based in North Weymouth, Mass., from Chicago-based Exelon for $530 million, extending its New England presence.

The independent power producer will use cash on hand to fund the acquisition.

New England is considered as a solid competitive market by Calpine. "With the acquisition of Fore River, we will grow our presence in a region that features favorable fundamentals and a supportive, market-based regulatory philosophy," said Thad Hill, the company's president and CEO, in a statement.

Built in 2003, the Fore River Generating Station features two Mitsubishi 501G combustion turbines, two heat recovery steam generators and one Mitsubishi steam turbine. The plant's dual-fuel capability enables it to run on either natural gas or fuel oil, depending upon market conditions.

Calpine said it continues to redeploy its capital through accretive acquisitions and divestitures, organic growth, balance sheet management and return of capital to shareholders through its share repurchase program. It has 87 power plants (natural gas and geothermal) in operation or under construction, representing approximately 26,000 megawatts of generation capacity.

The company expects to close the deal in the fourth quarter and will require approvals from the Federal Energy Regulatory Commission, as well as Hart Scott Rodino clearance.

Calpine did not retain a financial adviser for the effort. White & Case LLP was the lead M&A counsel to Calpine and the deal team included Michael Shenberg, Ipek Candan Snyder, Jessie Baxter, Sunny Kim, James Hayden, Stephanie Gentile, Henrik Patel, Jason Rothschild and Tal Marnin. Pierce Atwood LLP and Shawe & Rosenthall LLP also served as legal advisers.

The Deal previously reported that Exelon had hired Citigroup Global Markets Inc. as its exclusive financial adviser for the sale. Citi sent out teasers on Fore River in May 2014 and conducted a typical two-phase auction process.

At Citi, Jack Paris, Michael Karafiol and Rebecca Kruger were the primary bankers on the deal. Eda Henries, Raheel Abbasi and Josh Katz were also on the deal team.

DLA Piper LLP served as Exelon's legal adviser on the deal.

Constellation Energy Group Inc., now part of Exelon, had acquired Fore River and the Mystic plant in Everett, Mass. for $1.1 billion back in January 2011. Constellation acquired the two facilities from US Power Generating Co. through a bankruptcy sale process in the U.S. Bankruptcy Court for the Southern District of New York.

Mystic, a 2,002 megawatt facility in Charlestown, Mass., was not part of the Citi-run sale process and Exelon has no plans to sell it at this time, The Deal previously reported.

Exelon is shopping a number of other power plants as part of an ongoing process to evaluate non-core assets. The plants on the block include Conemaugh and Keystone; Hillabee via JPMorgan; and Quail Run Generating.